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CS Professional · CSR and Social Governance · CSR Projects and Implementation Agency

Nilgiri Tea Ltd spends Rs 25 lakh on a skill development programme for persons in its own plantation catchment area, including some of its employees' dependants, and also carries out a one-time disaster relief contribution. Which of the following is correct on the geography and beneficiary preference under the CSR Rules?

The company must give preference to the local area and areas around where it operates when spending on CSR. This is only a preference, so CSR is not confined to those areas, and it is not limited to the registered office state or aspirational districts.

  1. ACompanies must spend all CSR funds outside their local area
  2. BCompanies shall give preference to the local area and areas around where they operate, but CSR is not confined only to those areasCorrect
  3. CCSR can be undertaken only in the state of registered office
  4. DOnly projects in aspirational districts qualify

Explanation

The Act's CSR provisions require the company to give preference to the local area and areas around which it operates. This is a preference, not an exclusive restriction, so projects elsewhere are not barred.

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